How to Sell Art on Consignment: 10 Tips
Do you have art or other treasures that need a new home? Perhaps you acquired something from an inheritance, as was a gift, or you bought it and don’t want it anymore? Is it something that’s been passed down through the generations, or something that you’ve kept wrapped up from your last move and don’t have a place for? You’re not alone. Sellers ranging from private individuals to institutions frequently look for the best way to capitalize on artwork they no longer want.
We’ve put together 10 tips to help you decide what to do with your unwanted artwork. These tips are thoughts and questions everyone should consider before selling art on consignment. Here’s what you should know:
Why do you want to sell the artwork? You’re not alone in trying to decide what to do with art that you don’t want anymore. Finding a new home for artwork is known in the art profession as placing an artwork on the secondary market (the first market being the gallery or artist who sold it to you). There are many reasons that people try to sell artwork. Perhaps it was passed down through the generations and it’s not wanted (it’s just not you). Perhaps you know it has value and you want to capitalize on its value (flipping or reselling). Perhaps you just want to refresh a collection you have and make room for new artwork (museums regularly deaccession). Or, perhaps you have an artwork that is so valuable you don’t have the means to take care of it properly (insurance, storage, care). These are all excellent reasons to sell (or resell) an artwork.
How do you sell your artwork? Unless you’re a professional dealer, most people trust or consign, their artwork to an auction house or secondary market dealer.
What does consign mean? Consign means that you, the consignor, entrust your artwork to someone else (a consignee) to sell on your behalf. That is a consignment. When your artwork has been sold, based on the terms of a consignment agreement you have signed with your consignee, you will receive payment for your sold artwork.
It is important to understand what is the secondary market and what it means for you. In the artworld, the secondary market is the dealer or auction house that will resell an artwork that was previously sold by the artist or an art dealer (or art gallery).
What is your artwork worth? The easiest way to do this is from the comfort of the internet. Look up your artwork and research which galleries and/or auction houses sell work like the one you wish to sell. Three of our favorite resources are artsy.net, artnet.com and artprice.com, databases that sell information about art sales in terms of which galleries are currently selling or have sold them, and the prices listed artworks have historically fetched at auction. These databases will describe artworks in great detail and occasionally, with images.
Questions related to your artwork’s value include whether it was made by a known artist or whether it represents a moment in art history (for example, Funk, Society of Six, or Mission School). Do a little research to understand how much it would sell for at an auction. A fine art appraiser is an excellent resource to determine the quality and value of your artwork.
Do your homework. When offering your artwork for sale, you will be asked whether you are the legal owner with title, or the right, to sell it. Do you have documents to prove it? How did you acquire it? This is called provenance and contributes to the value of the artwork by showing its ownership history. In some cases, an artwork’s provenance adds great value to the piece when its provenance shows ownership by an esteemed collector (such as Peggy and David Rockefeller) or prominent celebrity (David Bowie).
Who will sell it for you? While the obvious place to consign artwork seems to be with an auction house, other prospective sellers of your artwork include the gallery it was purchased from, other galleries who sell artwork by the artist who made your work (or similar work), art consultants, and sometimes even the artist. Consignment enterprises such as 1stDibs, Chairish, and the RealReal are great for reselling contemporary and decorative artworks.
When considering auction houses (the three most prominent in the United States are Bonhams, Christie’s, and Sotheby’s), search their web links and sign up for newsletters, look them up on social media (Instagram and Twitter are our favorites), research recent sales, and do your best to understand who your potential buyer is.
What are key questions should you ask when choosing whom to consign your artwork with? Start asking some of these:
Does the seller have the tools – from attorneys to lending agencies – you need to sell your items?
How much experience do they have in selling works like yours? Your appraiser should be able to help you determine whether your work should be sold at a low-range, mid-range, or high-end seller.
Does the seller specialize in the type of item you’re selling? A dealer or auction house that specializes in your artwork will have the means to maximize price. For example, if your artwork is a signed and numbered lithograph, with provenance documents, by Henri Matisse - who would you entrust it to - a seasoned art consultant or an international auction house?
How many secondary market sales has it participated with in the past?
What types of buyers make up their clientele?
What are the guidelines for quality?
Before you enter a consignment agreement, look at your artwork objectively, photograph it and make a list of what to sell. If you’re selling a group of artworks at once, be sure to tag each one properly. Make and store copies of all necessary paperwork associated with the value of your piece.
As you negotiate your consignment agreement, ask how they plan to market your art work. Do they have a website that is attractive, easy to find, and dedicated to sales? Will they print a catalogue, and will it include a photo of your work?
Other questions include:
What other artworks does the seller offer for sale? If your artwork is the most expensive of the seller (or auction), that may not be good for you.
Will the seller pick up your artwork in a professional manner? Some dealers will ask you to drop off your artwork if it’s manageable and can be done without damage to the artwork. Otherwise, arrange for an art handler or professional art shipper, through the seller or auction house, to pick up your piece.
What are the consignment fees and sales split? Your seller, the person you will consign your artwork with, will charge fees that come out of total sales. You may have some leverage to negotiate favorable fees if you have several items, or if your piece is wanted for a specific sale.
How likely is it that your item will sell?
Who insures your item while it’s in the seller’s possession? If your insurance is the one that will cover it, double check with your insurer to make sure it is in fact covered.
What will the payout period for items be? This varies broadly, and payout can take from one week to over a month. Art consultants and auction houses typically wait until a buyer’s payment goes through before paying sellers. Verifying a buyer’s payment might take as little as 3 days to as long as 45 days before a seller receives a check.
What happens if your artwork doesn’t sell? If your piece does not sell, know when and where to pick-up your item after a sale period ends.
Your consignment agreement is a contract. Read it carefully. Once you’ve chosen a seller or an auction house, you are bound to each other by the terms of your agreement. Be aware that each seller and auction house has its own contract for consignors. Your agreement should outline every detail regarding the sale of your artwork. It’s important for you to know what happens to your artwork when it’s sold or not sold.
We like to attend auction sales. They’re fun, and if you’re consigning to an auction house, they are an good resource if you need an in person, full experience of the auction process. You’ll understand how your work will be reviewed, valued, and sold.
Know the season you’re selling in, and sell what’s in demand. With certain types of art or painting consignment, selling during certain seasons may be appropriate than others, drawing a more relevant group of buyers and a potentially higher profit for you.
10. Consult with other collectors or art professionals. Your fine art appraiser will be a good resource. If you’re unsure about whether or not to consign your artwork, or if you need extra advice about the process, consult with a consignor friend or art professional to get the reassurance and tips you need.
Consigning your artwork with confidence.
Whether you’re dealing with an extraordinarily rare work of art at a Sotheby’s sale, or opting to work with a more local, family-run auction house, the entire art consignment process is exhilarating.
While these 10 important tips are certainly not exhaustive, we hope we’ve provided you with a place to start and peace of mind in being aware of the considerations when consigning your artwork with an art consultant, gallery, or auction company. Remember to do your research, appraise and document your items, ask key questions to auctioneers, sell in season, know the fees and conditions of your contract, get insured, and consult with art consignment veterans.